The Strategist

Share of dollar-denominated payments via SWIFT rises to record high in July

08/25/2023 - 03:40

According to SWIFT data, the percentage of international payments made in dollars increased to a record 46%, reports Bloomberg.

Ten years ago, the dollar made up slightly more than a third of all transfers. The agency notes that the U.S. dollar is currently in first place, followed by the euro, pound, yen, and yuan.

The euro's power has decreased, which has largely led to a rise in the dollar's share in SWIFT transactions; according to Bloomberg, the euro's proportion in international payments in July was the lowest for the whole observation period at just under a quarter.

Additionally, the frequency of payments in yuan has increased; in July, their percentage exceeded 3%, compared to 0.03% in 2010.

SWIFT data, which does not represent the full foreign exchange market, supports the idea that the dollar's place in international finance is stable despite some attempts to diversify the composition of international payments.